Sona Koyo Steering Systems Limited (BSE:520057) agreed to acquire remaining 51% stake in JTEKT Sona Automotive India Ltd. from JTEKT Corporation (TSE:6473) for INR 4.9 billion on February 9, 2018. According to the terms of the consideration, Sona Koyo Steering Systems Limited will acquire 28.91 million shares of JTEKT Sona Automotive India Ltd. and issue 1.582 shares for every 1 share of JTEKT Sona Automotive India Ltd. JTEKT Sona Automotive India Ltd. reported INR 6.06 billion turnover for the year ended March 31, 2017. The transaction is subject to regulatory approvals, approval by creditors and shareholders of Sona Koyo Steering Systems Limited and JTEKT Sona Automotive India Ltd. and sanction by National Company Law Tribunal.

The transaction has been unanimously approved by Board of Directors of Sona Koyo Steering Systems Limited and JTEKT Sona Automotive India Ltd. As of October 13, 2018, shareholders meeting of JTEKT India Limited will be held on November 15, 2018 to approve the scheme. As of November 15, 2019, shareholders of JTEKT India approved the transaction. As of March 7, 2019, NCLT approved the transaction.

KJMC Corporate Advisors (India) Limited acted as fairness opinion provider and Walker chandiok & CO. LLP acted as independent valuer for Sona Koyo Steering Systems Limited in the transaction. Kotak Mahindra Capital Company Limited acted as financial advisor to JTEKT Corporation.